Changing the Cost Formula for a Month to the Cost Formula for a Year

During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:

Resource	Airplane Flight Hours			Total Cost
Airplane depreciation:
High	44,000			$ 18,700,000
Low	28,000			$ 18,700,000
Fuel:
High	44,000			445,896,000
Low	28,000			283,752,000
Airplane maintenance:
High	44,000			16,664,000
Low	28,000			12,496,000

Required:

If required, round answers to nearest dollar. Except round variable rate per hour to the nearest cent.

1. Develop an annual cost formula for airplane depreciation.

Total annual cost of airplane depreciation = fill in the blank 1 x ( $fill in the blank 2 )

Develop an annual cost formula for fuel.

Total annual cost of fuel = $fill in the blank 3

Airplane depreciationFuelAnnual number of airplane flight hours

Develop an annual cost formula for airplane maintenance.

Total annual cost of airplane maintenance = (fill in the blank 5 x $fill in the blank 6 ) + ( $fill in the blank 7

Airplane depreciationFuelAnnual number of airplane flight hours

)

2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 481,000 airplane flight hours.

Total annual cost of airplane depreciation	$fill in the blank 9
Total annual cost of fuel	$fill in the blank 10
Total annual cost of airplane maintenance	$fill in the blank 11